TNRERA Rules and Amendments
The Real Estate (Regulation and Development) Act, 2016 (RERA) has been a landmark legislation aimed at bringing transparency and accountability to India’s real estate sector. As the sector evolves, amendments to RERA become necessary to address emerging challenges, streamline processes, and enhance protections for buyers and developers alike. The RERA amendments bring significant changes that every stakeholder should be aware of.
Why Amend RERA?
Since its inception, RERA has played a critical role in regulating real estate projects, protecting buyers, and standardizing practices. However, the dynamic nature of the real estate market, technological advancements, and feedback from industry and consumers have highlighted areas requiring updates. The 2025 amendments aim to:
- Simplify registration and compliance processes
- Strengthen buyer protection measures
- Enhance dispute resolution mechanisms
- Incorporate technology for better transparency
- Align RERA rules with emerging real estate trends
Key Highlights of the RERA Amendments
- Simplified Project Registration Process
The amendments introduce a streamlined application and verification process, reducing paperwork and approval timelines. Developers can expect faster registration, enabling quicker project launches while maintaining compliance rigor.
- Extended Validity of RERA Registration
To accommodate project delays due to unforeseen circumstances (like pandemics or regulatory holdups), the registration validity period has been extended from 5 years to 7 years, with an option to apply for a 2-year extension.
- Stricter Escrow Account Norms
Financial transparency is reinforced with stricter rules on the escrow account. Developers must ensure that at least 80% of funds collected from buyers are used exclusively for project-related expenses, with mandatory quarterly audits.
- Enhanced Penalties for Non-Compliance
The amendments increase penalties for delays in project delivery and false disclosures. Promoters now face fines up to 5% of the project cost and/or imprisonment for continued violations, emphasizing accountability.
- Mandatory Digital Reporting and Transparency
RERA authorities will mandate online real-time updates on project progress, including construction milestones and financial statements, accessible to buyers for greater transparency.
- Buyers’ Protection and Compensation
Buyers will have enhanced rights to claim compensation for project delays or quality defects. Additionally, the amendments simplify the complaint filing and resolution process, aiming for quicker dispute settlement.
- Inclusion of Secondary Market Regulations
For the first time, provisions to regulate resale properties registered under RERA are introduced, ensuring transparency and safeguarding buyer interests in the secondary real estate market.
What Developers Should Do
- Review and Update Compliance Procedures: Developers must align their project registration, fund management, and reporting practices with the new amendments.
- Invest in Technology: Adopt digital tools for timely submissions and real-time progress updates.
- Educate Teams: Ensure legal, sales, and finance teams are well-versed with new requirements to avoid penalties.
- Engage Buyers Transparently: Proactively communicate with buyers regarding project status and documentation.
What Buyers Should Know
- Check Updated RERA Registrations: Always verify that projects are registered with the latest RERA approvals and follow updated rules.
- Understand Compensation Rights: Be aware of your enhanced rights for compensation in case of delays or defects.
- Utilize Online Portals: Use RERA portals for tracking project progress and raising grievances.
- Stay Informed: Keep up with amendments to make informed buying decisions and protect your investment.
Conclusion
The RERA amendments of 2025 mark a progressive step towards a more transparent, accountable, and technologically driven real estate ecosystem in India. Both developers and buyers stand to benefit from clearer regulations, faster processes, and stronger safeguards. Staying informed and compliant is key to thriving in the evolving real estate landscape.
